Subscribe to updates

You'll receive weekly summaries about Lancashire Council every week.

If you have any requests or comments please let us know at community@opencouncil.network. We can also provide custom updates on particular topics across councils.

Chat with this meeting

Subscribe to our professional plan to ask questions about this meeting.

“What investments will the pension fund consider?”

Subscribe to chat
AI Generated

Summary

Open Council Network is an independent organisation. We report on Lancashire and are not the council. About us

The Pension Fund Committee of Lancashire Council met on Friday 20 March 2026 to approve the Lancashire County Pension Fund Strategic Plan for 2026-29 and its associated budget for 2026-27. The committee also approved a revised Funding Strategy Statement and discussed governance matters, including updates on risk management and the implications of the 'Fit for the Future' programme.

Lancashire County Pension Fund Strategic Plan 2026-29 and Budget 2026-27

The committee approved the draft three-year Strategic Plan for the Lancashire County Pension Fund (LCPF) for 2026-29 and its budget for the financial year ending 31 March 2027. The strategic plan outlines objectives across four workstreams: Governance and Finance, Investments, Administration and Employer Risk, and Shareholder responsibilities. The 2026-27 budget reflects a 10.8% reduction on the previous year, driven by lower actuarial work and economies of scale from the expansion of Local Pensions Partnership Investments Limited (LPPI).

Review of Funding Strategy Statement

The committee approved the revised Funding Strategy Statement (FSS) for the LCPF. This statement, reviewed as part of the 2025 actuarial valuation, sets out the policies and assumptions used to determine how employer pension liabilities will be met. Key parameters for employer contribution rates, including a funding buffer of 115% and a recovery period of 20 years, were confirmed. The FSS also incorporates updated policies on new employer admissions, terminations, employer risk, and asset share allocation.

Lancashire County Pension Fund - Governance Matters

The committee received an update on governance and risk management issues for the LCPF. It was confirmed that the Fund is compliant with The Pension Regulator's General Code of Practice. An internal audit of LPPA's pension system automation processes found reasonable control measures, with LPPA agreeing to document its processes and recruit additional staff. The Fund's financial statements for 2024-25 were approved by external auditors, and the Annual Report has been updated accordingly. The committee approved the updated Breaches Policy and noted updates to the Fund's risk register. A new risk associated with preparations for local government reorganisation will be introduced from the next quarter.

Fit for the Future - Governance Arrangements

The committee discussed governance changes arising from the 'Fit for the Future' programme, which aims to reform the Local Government Pension Scheme (LGPS). New regulations, effective from 1 April 2026, will mandate enhanced knowledge and understanding requirements for all involved with the Fund, including substitutes on the Pension Fund Committee. The Head of Fund will formally assume the responsibilities of the Senior LGPS Officer. The committee approved the recruitment of an Independent Advisor with a broader remit covering investments, governance, and administration, and recommended that Full Council amend the committee's terms of reference to reflect a single Independent Investment Adviser role. The first Independent Governance Review (IGR) is scheduled for 2028.

Pension related training, 2025/26 Training Record and Training Plan 2026/27

The committee reviewed the training record for 2025/26 and noted attendance at various internal and external events. Members were encouraged to complete any outstanding online training modules. The Training Plan for 2026/27 was approved, which includes participation in the Hymans Robertson National Knowledge Assessment to ensure compliance with new 'knowledge and understanding' requirements.

Lancashire Local Pension Board Workplan 2026/27

The committee noted the proposed 2026-27 Work Plan for the Lancashire Local Pension Board. The plan outlines the Board's regular activities and those proposed in the 2026-27 Strategic Plan, developed in consultation with the Board's Chair.

Responsible Investments Report

The committee received an update from LPPI on responsible investment activities for Q4 2025. Key highlights included LPPI's successful re-designation as a signatory to the UK Stewardship Code and a significant joint investment with Northern LGPS in UK housing, acquiring over 5,000 homes with plans to expand to 15,000 over the next decade. Discussions also touched upon the importance of social and affordable housing, with the understanding that investment location decisions are made by specialist managers aiming for risk-adjusted returns and UK-wide diversification.

Pension Administration Performance Update

An update was provided on LPPA's administration services for Q4 2025. Overall casework performance exceeded the SLA target at 99.1%. However, employer retirement notifications were down, impacting the timeliness of first pension payments. LPPA has introduced a new online leaver form and is planning to automate active retirement payments. The number of complaints decreased, and customer satisfaction scores remained broadly consistent. The report also detailed progress on the McCloud Remedy and the Pensions Dashboard Programme.

Date of Next Meeting

The committee was informed that, following a Full Council decision, the start time for future committee meetings would be moved from 10:30 am to 10:00 am, effective from 21 May 2026. The next meeting is scheduled for 19 June 2026 at 10:00 am.

Exclusion of Press and Public

The committee resolved to exclude the press and public from the remainder of the meeting to discuss exempt information relating to Local Pensions Partnership Limited shareholder updates, budgets, and investment performance.

Local Pensions Partnership Limited - Shareholder Update, Budget 2026/27 and LPPI/LPPA Business Plans

The committee noted the shareholder update and approved the LPP Group budget for 2026/27, along with the business plans for LPPA and LPPI.

Investment Performance Update Report

The committee noted the updates on investment matters and the performance of the Fund's investments during Q4 2025.

Investment Panel Update

The committee noted the minutes from the Investment Panel meeting held on 11 December 2025.

Independent Investment Advisers - Strategic Objectives Assessment

The committee noted the compliance of the Independent Investment Advisers against their strategic objectives.

Independent Investment Adviser - Contract Extension

The committee approved the 12-month contract extension for Mr D Crum, Independent Investment Adviser, until 31 May 2027, citing the importance of continuity in providing high-quality investment advice.

Delegated decisions linked to this meeting

Decision summaries below are AI-generated from the council’s published record. Check the council source or the full decision page before relying on them.

Topics

Lancashire Local Pension Board Workplan 2026/27 Local Pensions Partnership Investments Limited (LPPI) Local Pensions Partnership Administration (LPPA) Pensions Dashboards Programme (PDP) Local Pensions Partnership Limited Mr D Crum Funding Strategy Statement Breaches Policy Lancashire County Pension Fund Strategic Plan for 2026-29 LGPS 'Fit for the Future' initiative Affordable Housing McCloud remedy Affordable Housing Training Plan 2026/27 Northern LGPS

Meeting Documents

Reports Pack

Public reports pack 20th-Mar-2026 10.30 Pension Fund Committee.pdf

Minutes

Minutes of Previous Meeting.pdf

Additional Documents

Appendix A.pdf
Governance Matters.pdf
Appendix C.pdf
Review of Funding Strategy Statement.pdf
Appendix B.pdf
Lancashire Local Pension Board Workplan 2026-27.pdf
Appendix A.pdf
Appendix A.pdf
Appendix B.pdf
Appendix A.pdf
Responsible Investments Report.pdf
Pension Fund Strategic Plan 2026-29 and Budget 2026-27.pdf
Appendix A Final draft FSS.pdf
Appendix B Summary of changes.pdf
Appendix A.pdf
Fit for the Future - Governance Arrangements.pdf
Appendix B.pdf
Pension related training 202526 Training Record and Training Plan 202627.pdf
Appendix A.pdf
Pension Administration Performance Update.pdf
Appendix C Rationale for decision other than recommendation.pdf
2026.02.20 MINUTES.pdf